Thursday, August 27, 2015

Portfolio up almost a percent from value before correction

The market stumble the other day was a test. Did you panic, did you cheer, did you hold or did your buy? I bought. I increased my exposure to U.S. equities by buying a little more of a TD e-Fund (TD US Index: TDB902).

Today my retirement portfolio is up almost a full percent from where I sat about eight days ago or just before the correction.

If this grandfather hadn't been babysitting on the day of the huge and oh-so-sudden correction, I'd have bought a lot. Damn. I've been moving into cash for some time and waiting for the moment. The correction came and went so quickly. One had to move fast. There are still stocks going at reduced prices but the fire sale is over.

Oh well. Corrections, even sudden major corrections, are a part of investing in equities. Keep your powder dry. There will be another equity sale in the future. Be patient. Sometimes these recoveries are simply a bounce that will run out of energy and the stocks will begin sliding downhill again. I may get a second kick at the can.

I should mention that I am up almost five percent from the portfolio low reached at the worst of the quick correction. Leave the panic talk to the newspaper reporters and television talking heads.

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